INTR Inter and Company Inc

Inter&Co Inc. (NASDAQ: INTR | B3: INBR32), the leading financial super app providing financial and digital commerce services to over 34.9 million customers, today reported financial results for the third quarter of 2024.

Highlights:

• Record Net Income of R$ 260 million ($52 million USD).
• Total Payment Volume (TPV) of R$ 320 million ($64 million USD), up 46% YoY, a R$ 1.2 trillion Run Rate.
• Total Net Revenue of R$ 1.7 billion ($340 million USD), up 32% YoY.
• Net Interest Margin of 9.6%, up from 9.2% last quarter.
• ROE of 11.9%, up 6.2 p.p. YoY.
• 34.9 million clients, with 1.1 million net new active clients, totaling 19.5 million active clients.

Figures in USD have been converted with the USD BRL rate of 1 USD = 5.00 BRL as of Tuesday, November 12 at 9:00 am ET. Exchange rates can fluctuate.

João Vitor Menin, Global CEO of Inter&Co, commented:

“We had a solid third quarter, reporting increased profitability and growth in both fee and interest income. Our focus on executing the 60/30/30 plan by increasing market share and product penetration, while we maintain efficiency gains is paying off.”

“We are constantly innovating, enhancing our super app with new features and hyper-personalizing the client experience. And our clients are rewarding us with more deposits and increased engagement, boosting our revenues. In addition to that, our sound capital allocation strategy has ensured that as our deposits have grown, so has our net interest margin.”

He added, “We are building an increasingly diversified and resilient business, and I’m confident in our ability to continue delivering value to our clients and shareholders in the years to come.”

Conference CallInter&Co will discuss its 3Q2024 financial results on November 14th, 2024, at 01 p.m. ET. The webcast details, along with the earnings materials can be accessed on the company’s Investor Relations website at https://investors.inter.co/en/.

About Inter&CoInter&Co (NASDAQ: INTR), the company that controls Banco Inter in Brazil and the subsidiary Inter&Co Payments, is the pioneering financial super app serving over 35 million customers across the Americas. The Inter ecosystem offers a broad array of services, including banking, investments, mortgages, credit, insurance, and cross-border payments. The financial super app also boasts a dynamic marketplace, linking consumers with shopping discounts, cashback rewards, and exclusive access to marquee events across the globe. Focused on innovation and captivating member experiences, Inter&Co delivers comprehensive financial and lifestyle solutions to meet the evolving needs of modern consumers.

Investor Relations:Rafaela de Oliveira Vitóriair@inter.co

Media Relations:Kaio Philipe kaio.philipe@inter.co

Chemistry Agencyinterco@chemistryagency.com

DisclaimerThis report may contain forward-looking statements regarding Inter, anticipated synergies, growth plans, projected results and future strategies. While these forward-looking statements reflect our Management’s good faith beliefs, they involve known and unknown risks and uncertainties that could cause the company’s results or accrued results to differ materially from those anticipated and discussed herein. These statements are not guarantees of future performance. These risks and uncertainties include, but are not limited to, our ability to realize the number of projected synergies and the projected schedule, in addition to economic, competitive, governmental and technological factors affecting Inter, the markets, products and prices and other factors. In addition, this presentation contains managerial figures that may differ from those presented in our financial statements. The calculation methodology for these managerial numbers is presented in Inter’s quarterly earnings release. Statements contained in this report that are not facts or historical information may be forward looking statements under the terms of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may, among other things, beliefs related to the creation of value and any other statements regarding Inter. In some cases, terms such as “estimate”, “project”, “predict”, “plan”, “believe”, “can”, “expectation”, “anticipate”, “intend”, “aimed”, “potential”, “may”, “will/shall” and similar terms, or the negative of these expressions, may identify forward looking statements.

These forward-looking statements are based on Inter's expectations and beliefs about future events and involve risks and uncertainties that could cause actual results to differ materially from current ones. Any forward-looking statement made by us in this document is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether because of new information, future developments or otherwise. The definition of each such operational metric is included in the earnings release available on our Investor Relations website.

For additional information that about factors that may lead to results that are different from our estimates, please refer to sections “Cautionary Statement Concerning Forward Looking Statements” and “Risk Factors” of Inter&Co Annual Report on Form 20-F. The numbers for our key metrics (Unit Economics), which include, among other, active clients and average revenue per active client (ARPAC), are calculated using Inter’s internal data. Although we believe these metrics are based on reasonable estimates, there are challenges inherent in measuring the use of our business. In addition, we continually seek to improve our estimates, which may change due to improvements or changes in methodology, in processes for calculating these metrics and, from time to time, we may discover inaccuracies and adjust to improve accuracy, including adjustments that may result in recalculating our historical metrics.

About Non-IFRS Financial MeasuresTo supplement the financial measures presented in this press release and related conference call, presentation, or webcast in accordance with IFRS, Inter&Co also presents non-IFRS measures of financial performance, as highlighted throughout the documents. The non-IFRS Financial Measures include, among others: Adjusted Net Income, Cost of Funding, Efficiency Ratio, Cost of Risk, Cards+PIX TPV, Gross ARPAC, Global Clients, Total Gross Revenues, and Return on average equity (ROE).

A “non-IFRS financial measure” refers to a numerical measure of Inter&Co’s historical or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS in Inter&Co’s financial statements. Inter&Co provides certain non-IFRS measures as additional information relating to its operating results as a complement to results provided in accordance with IFRS. The non-IFRS financial information presented herein should be considered together with, and not as a substitute for or superior to, the financial information presented in accordance with IFRS. There are significant limitations associated with the use of non-IFRS financial measures. Further, these measures may differ from the non-IFRS information, even where similarly titled, used by other companies and therefore should not be used to compare Inter&Co’s performance to that of other companies.